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Omai Gold Mines Corp
Symbol OMG
Shares Issued 377,845,932
Close 2023-11-13 C$ 0.04
Market Cap C$ 15,113,837
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Omai Gold drills 12 m of 5.89 g/t Au at Omai

2023-11-13 11:04 ET - News Release

Ms. Elaine Ellingham reports


Omai Gold Mines Corp. has released further strong drill results from the company's Omai gold project in Guyana. These new assays for diamond drill holes 23ODD-066, -067 and -068, combined with the recent drill results, further extend the multiple gold-zones of the Wenot deposit, and are expected to positively impact the upcoming mineral resource update.

Highlights from these recent drill holes include:

  • 5.89 grams per tonne (g/t) gold (Au) over 12 m;
  • 8.70 g/t Au over 4.6 m;
  • 2.45 g/t Au over 8.6 m;
  • 1.99 g/t Au over 8.1 m;
  • 1.33 g/t Au over 8.5 m.

Elaine Ellingham, president and chief executive officer, commented: "These results from the Wenot drilling, together with the string of recent strong results, give an indication of the scope of untapped potential of the Omai gold project. The grades and widths are very favourable for developing an open-pit operation, particularly considering the benefits of a brownfields project such as Omai. We have commenced our updated mineral resource estimate, expected before year-end. This will be the third NI [National Instrument] 43-101 mineral resource estimate in less two years. Once completed, we will advance towards a preliminary economic assessment (PEA), with certain supporting studies already completed or under way.

"The 2023 drilling, in addition to expanding the main gold zones at Wenot, has also outlined a wide zone of gold mineralization within the southern sedimentary rock sequence. It appears to be continuous from surface to a depth of at least 300 m. Drilling suggests the gold zone increases in width and grade with depth, and may merge at depth with the gold zone at the central contact shear. This discovery is expected to have a positive impact on the upcoming resource estimate and bolsters management's belief that the West Wenot target area is well suited to open-pit mining.

"Based on our work completed over the past 2.5 years, we believe that the Omai project is likely to be the next large-scale gold mine to open in Guyana. Brownfields projects can generally expect accelerated timelines and lower capital costs, and Omai will benefit from existing road access (soon to be fully paved), an existing tailings facility (that can be refurbished), and known metallurgy and recoveries from past production. A mine at Omai would attract employees from the local work force who have years of mining experience. The town of Linden, just 55 kilometres from the Omai property, is a community with deep roots in mining, both from its origins in bauxite mining and as the home to many of the former Omai gold mine employees. This community of almost 40,000 people has the relevant skills for the many jobs that a large-scale gold mine offers."

Diamond drill holes 23ODD-066 and -067 further test the extent of the West Wenot target area that lies west of the past-producing pit. Hole 23ODD-068 was drilled in the mid-pit area and did not reach the planned depth, but nonetheless intersected a few gold zones on the north flank of Wenot. Results are detailed in the table entitled "Drill results for Wenot -- holes 23ODD-066, -067 and -068." The Wenot shear corridor is 300 metres to 400 metres wide along most of the 2.5 km strike extension, and typically hosts five main zones hosting gold mineralization.

Hole 23ODD-066 was a shallower test of the West Wenot target, approximately 500 m west of the past-producing pit. This hole tests the zones 75 m to 100 m west and 100 m above hole -063. Hole 23ODD-063 (previously reported) intersected in aggregate 138 m of gold mineralization (greater than 0.3 g/t Au), including 4.04 g/t over 31.1 m and two g/t Au over 27.5 m. Hole -066 intersected the central shear gold-zone at a vertical depth of 90 m, where it assayed 2.45 g/t Au over 8.6 m. The same zone, 100 m deeper in hole 22ODD-039, assayed 2.32 g/t Au over 17.1 m and 5.58 g/t Au over 1.1 m.

Farther downhole in 23ODD-066, a 75-m wide sediment-hosted shear includes 5.89 g/t Au over 8.7 m, 0.9 g/t over 13 m, 0.40 g/t over 14.6 m and 0.45 g/t over 7.9 m. Approximately 50 m above hole -066, an older drill hole intersected the same zone, returning 1.23 g/t Au over 75 m. Previous shallow drill holes show continuity of this zone to surface. Farther to the west, there is limited drilling and focused on the central contact shear and the volcanic sequence to the north.

The 2024 program will step out and test for the extension of these wide sediment-hosted gold zones both to the west as well as to the east, along the full extent of the Wenot deposit. These zones have had very little attention in the past yet have the potential to add very significantly to the Wenot resource along the full 2.5 km strike.

Hole 23ODD-067, immediately west of the past-producing pit, was drilled 100 m above hole 22ODD-052. It was to confirm mineralization at shallower depths, and to fill a large undrilled gap in the resource model. Hole -067 intersected mineralization in all five main gold zones:

  • The rhyolite-diorite dike zone includes 1.99 g/t Au over 8.1 m, 1.81 g/t Au over 3.9 m and 1.6 g/t Au over 3.5 m, starting at a 70 m vertical depth;
  • The central shear (feldspar porphyry-proto-mylonite zone) assayed 5.89 g/t Au over 12 m;
  • The sediment-hosted zone roughly 60 m across includes a number of intervals: 1.38 g/t Au over 4.9 m, 0.69 g/t Au over 8.1 m, 0.69 g/t Au over 11.2 m and 0.49 g/t Au over 4.3 m. The same zone 100 m deeper in hole 22ODD-052 intersected 2.57 g/t Au over 33.9 m;
  • The other zones include:
    • Volcanic-hosted quartz-ankerite veins on the north flank of the deposit within the volcanic sequence, assaying 2.13 g/t Au over 2.1 m; and
    • A quartz feldspar porphyry dike close to the southern limit of the Wenot shear, assaying 2.4 g/t Au over 3.5 m.

Hole 23ODD-068 was drilled approximately 150 m west of hole 23ODD-064, and 50 m west of holes 21ODD-001 and -013. The hole was to test the central shear contact zone at a greater depth and also to explore for the sediment-hosted zone in the central area of the Wenot deposit.

Two attempts were made to complete this hole without success, although three gold intervals were encountered. Two zones within the northern volcanics were intersected, the first grading 1.33 g/t Au over 8.5 m would appear to correlate with a wide zone 75 m up-dip in hole 21ODD-001 that assayed 1.85 g/t Au over 22.5 m. These gold zones identified on the northern flank of Wenot should be explored with a series of short holes, as these are near surface and may represent gold-bearing splays off the main structure. Hole -068 terminated at the beginning of the rhyolite-diorite dike zone with one intersection of 1.87 g/t Au over 0.9 m, 13 m before the hole terminated. A follow-up hole is planned in this area early in the next drill program.

Holes in this area represent the deepest intersections of the Wenot deposit: hole 23ODD-064 intersected 5.18 g/t Au over 20.2 m at a vertical depth of approximately 450 m; hole 21ODD-001 intersected 4.77 g/t Au over 22 m at a depth approximately 300 m; and hole 21ODD-013 intersected 6.92 g/t Au over 19 m at a vertical depth of approximately 360 m. These are significant as they indicate potential for increased grade and width of zones at depth that could support later underground mining from the bottom of an open pit operation.

The most recent National Instrument 43-101 mineral resource estimate for the Omai property, dated Dec. 2, 2022, includes a Wenot resource of 756,600 indicated ounces of gold grading 1.34 g/t Au and 1,112,600 inferred ounces of gold grading 1.72 g/t Au. Importantly, 88 per cent of this current Wenot mineral resource estimate is above a 325 m depth, while the deposit remains open at depth, and is already confirmed by drilling to depths of at least 450 m.

For the adjacent Gilt Creek deposit, the NI 43-101 mineral resource estimate is 1,151,000 indicated ounces of gold grading 3.22 g/t Au and 665,000 inferred ounces of gold grading 3.35 g/t Au. The Gilt Creek deposit is open at depth, and drilling has confirmed that the mineralized intrusive extends to depths of at least 967 metres.

Quality assurance/quality control

Omai maintains an internal quality assurance/quality control program to ensure sampling and analysis of all exploration work are conducted in accordance with best practices. Certified reference materials, blanks and duplicates are entered at regular intervals. Samples are sealed in plastic bags. Samples from the Wenot drilling were shipped to ActLabs and, in some cases, MSALabs, both are certified laboratories in Guyana, respecting the best chain of custody practices. At both laboratories, samples are dried, crushed up to 80 per cent passing two millimetres, riffle split (250 g) and pulverized to 95 per cent passing 105 micrometres, including cleaner sand. Fifty grams of pulverized material are then fire assayed by atomic absorption spectrophotometry (AA). Initial assays with results above three parts per million gold are reassayed using a gravimetric finish. For samples with visible gold where initial assays do not run above three g/t, a second pulp is made from the coarse reject and an additional fire assay is completed. Certified reference materials and blanks meet with quality assurance/quality control specifications.

Qualified person

Ms. Ellingham is a qualified person (QP) under National Instrument 43-101 -- Standards of Disclosure for Mineral Projects and has approved the technical information contained in this news release. Ms. Ellingham is not considered to be independent for the purposes of National Instrument 43-101.

About Omai Gold Mines Corp.

Omai Gold Mines holds a 100-per-cent interest in the Omai prospecting licence, which includes the past-producing Omai gold mine in Guyana, and a 100-per-cent interest in the adjoining Eastern Flats mining permits. The company released an updated mineral resource estimate Oct. 20, 2022, that includes a 14-per-cent expansion to the Wenot shear-hosted gold deposit, and an initial NI 43-101 MRE for the adjacent Gilt Creek intrusion-hosted deposit. Once South America's largest producing gold mine, Omai produced over 3.7 million ounces of gold between 1993 and 2005. Mining ceased at a time when the average gold price was less than $400 (U.S.) per ounce. As a brownfields project, Omai benefits from good access and a wealth of historical data that provide knowledge of the geology, nature of the gold mineralization on the property, as well as metallurgy, historical recoveries and many other relevant mining parameters. The company's priorities are to compile results of the 2023 drilling and proceed with an updated mineral resource estimate that will form the basis of a preliminary economic assessment (PEA).

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